The recent Shiba Inu price retracement has shifted market focus toward a technical zone that analysts closely monitor during corrective phases. After surrendering most early January gains, the meme coin now trades near levels associated with long-term accumulation. Broader crypto market weakness and macroeconomic uncertainty have shaped the pullback. Still, some analysts frame the move as a reset rather than a trend reversal.
Shiba Inu Slides Into Key Fibonacci Buy Zone
Shiba Inu retraced sharply after its early January rally, aligning with weakness across digital assets. According to a TradingView analysis shared by analyst Vivaforexwithcaro, the decline pushed SHIB to the 0.786 Fibonacci level on the four-hour timeframe. Traders often view this retracement as a high-probability entry zone during broader uptrends.
During Asian trading hours on Monday, SHIB dropped to a session low of $0.00000745. The move reflected broader risk-off sentiment tied to ongoing macroeconomic concerns. The analyst’s chart highlighted a demand zone near this level, marked as a pink support area. This zone closely matches the 78.6% Fibonacci retracement, reinforcing its technical relevance.
Vivaforexwithcaro described the decline as a short-term correction rather than a structural breakdown. He referred to the current price range as a “sweet spot” for long-term Shiba Inu buys ahead of a potential recovery. However, he stressed that follow-through depends on broader crypto market conditions and buyer response at support levels.
Weak Structure Clouds Near-Term Shiba Inu Outlook
Despite the Fibonacci alignment, Shiba Inu’s broader price structure remains fragile. The token opened the year with strength, rallying more than 25% from $0.00000691 to $0.00001009 by January 5. That level remains its highest price so far this year.
Since then, SHIB corrected roughly 22%, trading near $0.00000785 at the time of analysis. The same TradingView chart showed a breakdown below an ascending support trendline around $0.0000083. That move added to signs of fading momentum and reinforced the bearish short-term structure.
Although SHIB posted a notable lower-wick rejection on the four-hour close, analysts still describe the setup as weak. Price behavior around the 0.786 Fibonacci level will likely shape near-term direction.
Elsewhere, analyst SHIB KNIGHT offered a more optimistic view, citing a breakout above a descending trendline. In contrast, MMB Trader maintained a cautious stance. He argued that Shiba Inu remains inactive below resistance at $0.00001165 and $0.000014, despite long-term bullish expectations.
Source: https://production.coinpaper.com/13884/shiba-inu-price-pulls-back-to-key-fibonacci-support-zone
